Question

1. Sunland Corporation sells item A as part of its product line. Information as to balances on hand, purchases, and sales of item A are given in the following table for the first six months of 2020.

	Quantities
Date	Purchased	Sold	Balance	Unit Price of Purchase
January 11	-		360	$4.5
January 24	1,240	-	1,600	$4.8
February 8	-	370	1,230	-
March 16	600	-	1,830	$5.4
June 11	-	680	1,150	-

Using Perpetual System:

3. Compute the cost of goods sold and ending inventory at June 30 under the moving average inventory pricing method. (Round the unit cost to two decimal places, and the total cost to the whole dollar.)

Answer 1

	Available for sale			Cost of goods sold			Ending Inventory
Date	Units	Unit cost	Total Cost	Units	Unit cost	Total Cost	Units	Unit Cost	Total Cost
Jan-11							360	4.5	1,620
Jan-24	1,240	4.8	5,952				1,600	4.73	7,572
Feb-08				370	4.73	1,750	1,230	4.73	5,822
Mar-16	600	5.4	3,240				1,830	4.95	9,062
Jun-11				680	4.95	3,366	1150	4.95	5,696
Total						5,116			5,696

Cost of goods sold = $5,116

Cost of ending inventory = $5,696

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